Systemic US banks’ RWAs edge lower in Q3
Bank of America reaps benefit of op risk cut
The risk-weighted assets (RWAs) of the eight too-big-to-fail US banks drifted lower over Q3, but at a slightly slower rate than the prior quarter. RWA amounts as calculated using banks’ own internal models also fell faster than when measured using the regulator-set standardised approach.
The total amount of RWAs used to the set the binding Common Equity Tier 1 (CET1) capital requirements for each firm stood at $6.67 trillion at the end of Q3, down just shy of 2% on Q2. Binding RWAs refer to
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